What's the Background?
Currently, fresh, frozen and processed U.S. pork are ineligible to be shipped to Argentina because of unscientific mitigation requirements and other sanitary issues that are not based on science. But since the election in late 2015 of President Mauricio Macri, who unlike his predecessor is pro-trade, the United States and Argentina have been working toward closer commercial ties. Argentina has indicated that it would like the United States to reinstate its status under the Generalized Systems of Preferences (GSP), a U.S. preferential trade program. The U.S. Department of Agriculture and the Office of the U.S. Trade Representative are negotiating an export certificate with Argentina that would open that country’s market to U.S. pork.
Why Does it Matter to our Producers?
The United States over the past 10 years, on average, has been the No. 1 exporter of pork in the world; it is the globe’s lowest cost producer of pork. In any given year, the U.S. pork industry ships product to more than 100 countries. Exports add significantly to the bottom line of all U.S. pork producers, adding more than $48 to the value of each hog marketed in 2015, when $5.6 billion of U.S. pork was exported. Argentina, which has a de facto ban on U.S. pork, has a population of more than 41 million people and a per capita income of $17,250 – higher than Mexico’s – making it an attractive market for U.S. pork.
What is NPPC's position?
NPPC supports opening the Argentine market to U.S. pork and is urging the U.S. government to negotiate an export certificate that would allow fresh, frozen and processed U.S. pork to be shipped to Latin America’s third largest economy. NPPC wants work on the certificate to continue on an expedited basis. It also has suggested that in granting countries GSP trade status, the U.S. government should consider the treatment U.S. exports receive in those nations.